Multilateral Development Bank (MDB)
What is a Multilateral Development Bank (MDB)? A multilateral development bank (MDB) is a financial institution established by multiple member countries and falls under international law. The owners of multilateral development banks are a national government and other international institutions and organizations. The purpose of MDBs is to facilitate financing and provide advisory services for...
Modified Dietz Method (MDM)
What is the Modified Dietz Method (MDM)? The Modified Dietz Method (MDM) is a method that is used to measure a portfolio’s historical returns based on a weighted calculation of its cash flows. MDM takes into account the timing of the cash flows and assumes that a constant rate of return is achieved over a...
Idiosyncratic Risk
What is Idiosyncratic Risk? Idiosyncratic risk, also sometimes referred to as unsystematic risk, is the inherent risk involved in investing in a specific asset, such as a stock. Idiosyncratic risk is the risk that is particular to a specific investment – as opposed to risk that affects the entire market or an entire investment portfolio....
War Bonds
What are War Bonds? War Bonds are debt instruments (bonds) that are issued by governments to finance military operations and production in wartime. War bonds tend to appeal to the sense of patriotism in individuals, who even see their purchase as a civic duty. Whilst there have been a variety of different structures for war...
Self-Fulfilling Prophecy
What is a Self-Fulfilling Prophecy? A self-fulfilling prophecy is an expectation – positive or negative – about something or someone that can affect a person’s behavior in a way that leads those expectations to become a reality. For example, if investors think the stock market will crash, they will buy fewer stocks, prices will start...
